Settlement

Which organization is in charge of settling transactions that take place in the daily and intraday markets?

The Market Operator (OMIE), as per its role as system manager of energy purchase and sale bids, is in charge of carrying out the settlement of any outcomes from matching processes that take place in the daily and intraday markets, acting as a central counterparty between buyers and sellers.

 

How are market transaction settlements carried out?

After each session of daily and intraday market bids, and after each round of continuous intraday market trading, all matched transactions are settled and this information is accordingly updated on the agents website.

Each agent's daily settlement is the sum of hourly entries corresponding to sales and purchases made each hour during the different bidding sessions and during trading rounds in the continuous market.

In the case of shared bids, the market operator will settle with each agent according to their percentage of participation in a given power plant.

Below are the entries which are noted in settlements related to the daily and intraday bidding markets and to the continuous intraday market:

1. DAILY AND INTRADAY MARKETS

For each hour and market session (daily and intraday), a unit settlement will show the following entries, valuing the energy matched to the marginal price of the area (Spain or Portugal) to which the unit belongs:

• Each selling unit is entered as a collection right equivalent to the energy sold times the marginal price in its area.

• Each buying unit is entered as a payment obligation equivalent to those purchases made times the marginal price in its area.

1. THE INTRADAY CONTINUOUS MARKET

For each hour and intraday trading session, a unit settlement will show the following account entries, valuing the energy by matching it to the price of the resulting transaction:

  • Each seller unit is awarded a collectiong right, equivalent to the energy sold times the transaction price.
  • Each buyer unit registers a payment obligation, equivalent to its purchases times the price of each transaction, if said price is positive.
  • When said price is negative, each buyer unit is awarded a collection right, equivalent to its purchases times the price of each transaction.

Each account entry is linked to the bidding round during which the offer was matched.

 

What is congestion rent and whom is it settled with?

It's the income generated in those hours in which, as a result of matching, two price zones become decoupled, hence the price in the exporting zone is lower than the one in the importing zone. This occurs when the exchange capacity established between these areas reaches its limit. Congestion rent amounts are calculated as the total energy exchanged times the price difference between the two price zones, and is settled as follows:

• In the case of a market separation between Spain and Portugal, the congestion rent due to the price difference between Spain and Portugal is assigned equally (fifty-fifty) among system operators in both countries.

• In the case of a market separation between Spain and France, the congestion rent due to the price difference between Spain and Portugal is assigned equally (fifty-fifty) among system operators in both countries.

• In the case of a market separation between Spain and another country outside the EU, the congestion rent due to a price difference between Spain and the other country is assigned to the Spanish system operator.

 

Who receives the settlement?

In the case of agents who participate in the market, either directly or in the name and on behalf of third parties (direct representation), the market operator will settle to the account of the holder agent.

However, when an agent acts in their own name and on behalf of third parties (indirect representation) the settlement will be made to the representative's account.

OMIE will settle separately each of the activities for which an agent may be participating in the daily and intraday markets, considering activities to be: Production (for facilities listed in the relevant administrative registry), Trading, Direct Consumer or System Loading Manager.

 

How are cross-border flows resulting from market coupling settled?

OMIE, acting as a central counterparty, settles with market operators designated for France (or their central counterparts) those flows resulting from the interconnection between Spain and France due to their market coupling processes.

Likewise, in the continuous intraday market, OMIE acts as a central counterparty and has signed settlement agreements with the market operators appointed in France in order to settle the corresponding cross-border transactions.

 

It is necessary to report program disaggregations after matching?

Since the implementation of the continuous intraday market, agents are not required to report disaggregations of programs matched in the daily and intraday markets when their facilities are represented in the name and on behalf of third parties.

In such cases, entries (collection rights and payment obligations) will continue to be assigned to the agent but will be identified with the agent's unit.

 

When does OMIE publish the settlement?

After each market session, OMIE makes available to agents a draft settlement that can be looked up in the agents' website.

Additionally, every business day the market operator makes available to market agents yet unpublished settlements of previous daily and intraday market sessions. Said publication is called daily settlement.

This information is available on the Market Operator's Information System.

 

How can settlement results be downloaded for verification?

The market operator publishes daily settlement results for each agent in different formats (.txt, XML, etc …) on the Market Operator's Information System, available for downloading and subsequent processing.

In order to guarantee confidentiality, as established in Market Rules, each agent can download the result of their daily settlement by accessing the Market Operator's Information System using their digital certificate.

They can access further information at the Market Operator's Information System (https://www.mercado.omie.es).

 

Where can settlements related to continuous intraday market trading be checked?

Agents may access the agents website to look up and check settlements related to their continuous intraday market operations. This information is updated after each trading round to include the settlement of transactions matched in said round.

Agents can also download in electronic formats (both as .txt files included in the entries ZIP file, and as XML files) the results of their daily settlement which are published according to a settlement calendar, and include both bidding and continuous market results.

 

How transactions related to the continuous market are identified?

Account entries (collection rights and payment obligations) corresponding to the continuous intraday market are labeled and connected to a new segment ('S.CONT') and therefore distinguishable from daily market transactions ('S.DIAO' segment) and intraday bids ('S:INTRD' segment).

 

Is there a right to claim a settlement?

Once the daily settlement has been published, agents have a period of three working days to submit any claims they deem appropriate, whereas the market operator has an additional period of three business days to deal with such claims.

Agents must submit claims through the procedures enabled for such a purpose on the Market Operator's Information System.

In the event that, for any reason, a settlement is not yet final, the Market Operator must state its provisional nature. Otherwise, the settlement becomes final.

 

Where can one find more details about settlement processes?

There is more detailed information on settlement processes in the market rules section, which can be accessed via the menu "Market Rules" → "OMIE Rules".